Bitcoin hints new momentum: up or down?

Bitcoin failed to get out of the sideways trend 59,383.67 - 62,637.96 on Tuesday. The breakout turned out to be false, consolidation continues.

In general, the situation looks a bit boring and requires patience to wait for at least some clarification. But this is not bad at all, especially for those who trade in the corridor and now may risk selling on a rebound.

In the meantime, in search of clarity, I propose to consider the proposed scenario. There is a symmetrical triangle outlined on the daily chart. The emphasis here is on the word "outlined" - it is too early to make a final conclusion, it must be observed.

But if the figure is justified, then the market is waiting for a new impulse soon. But where is not yet clear. An equilateral triangle is a pattern of uncertainty, which means that the price of BTCUSD can both fall and rise.

Well, even with such a presumptive technical picture, a deeper correction is not ruled out. The potential for working out the downward pattern is at $52,000 per coin. And the potential of working upwards is on the achievement and update of the historical maximum.

While many analysts are predicting the next target for BTCUSD at $100,000 per coin, JP Morgan's forecasts are more modest.

The bank's strategists have stated that the current fair value of the main cryptocurrency is around $35,000. According to Bloomberg, JP Morgan analysts noted that if "the relative volatility of BTC is halved next year," then the $73,000 price target "seems reasonable."

But we remember well how back in October, JP Morgan experts said that Bitcoin would be the new gold for hedging against inflation. And that was what caused the cryptocurrency to skyrocket for most of the year. But now they are claiming that the current volatility of BTC is "four times" different from the yellow metal.

The argument for reducing volatility is noteworthy. We have already noted the other day that this is due to the natural maturation of the market and the institutional acceptance of the asset.

Many experts speak about this, including the CEO and founder of Pantera Capital, Dan Morehead. Morehead believes that the extreme volatility of bitcoin may become a thing of the past, which means that the previous price cycles that investors are used to are over. Consequently, the market will experience less volatility both upward and downward.

Many experts set this bar at the end of this year. But, in my opinion, the timing is something that is extremely difficult to predict in the financial markets.

Catalysts such as rising inflation and widespread institutional adoption are likely to push the mainstream cryptocurrency towards the $100,000 mark. But looking at the chart and guided by the Fibo Expansion, the next target for BTCUSD is around $74,000 per coin (161.8 Fibo Expansion). Let the price reach it first, after which we will discuss the following ambitious targets.